An innovation in China’s e-finance market “Yu’E Bao”
An innovation in China’s e-finance market “Yu’E Bao”
On the October, 1995, the Security First Network Bank (SFNB) is established, which is considered as the sign of the emergence of internet financial industry (e-finance). After that, it emerged and developed in many other countries. From the perspective of traditional financial industry, the e-finance is absolutely a “showstopper” which brings a lot of innovation pressure to traditional financial industry. The e-finance is continuously permeating to every field of traditional financial industry and as it developed, traditional bank industry becomes more difficult to control clients’ trade and payment behavior. The e-finance primarily involves internet bank, internet securities, online insurance and online payment. According to advantages of the convenient service, low cost for banks, about 85% of banks in developed country have already operated e-finance service (1.Zhu, 2013). Except of this, some e-finance companies were emerged in US such as SFB, Telebanc and Net.B@nk. In China, e-finance has been dramatically increasing based on e-commerce. The Alibaba group can be regarded as the representative which is the one of the most successful e-finance and e-commerce organization in China. The e-finance division of Alibaba aims to build a Chinese e-finance territory according to external financial innovation based on internet platform, e-commerce platform and mobile network platform. In 2013, June 13th, Alibaba has launched Yu’E Bao which means “savings balance treasure”. It is an online investment fund and it poses a big challenge to competitors in China’s banking and asset management industries and to country’s regulators. It is also a significant management change to Alibaba. This essay will analyze Yu’E Bao based on china’s e-commerce market and financial policy background. In addition the outcomes of Yu’E Bao will be critically evaluated from both external and internal aspect.
In order to analyze
On the October, 1995, the Security First Network Bank (SFNB) is established, which is considered as the sign of the emergence of internet financial industry (e-finance). After that, it emerged and developed in many other countries. From the perspective of traditional financial industry, the e-finance is absolutely a “showstopper” which brings a lot of innovation pressure to traditional financial industry. The e-finance is continuously permeating to every field of traditional financial industry and as it developed, traditional bank industry becomes more difficult to control clients’ trade and payment behavior. The e-finance primarily involves internet bank, internet securities, online insurance and online payment. According to advantages of the convenient service, low cost for banks, about 85% of banks in developed country have already operated e-finance service (1.Zhu, 2013). Except of this, some e-finance companies were emerged in US such as SFB, Telebanc and Net.B@nk. In China, e-finance has been dramatically increasing based on e-commerce. The Alibaba group can be regarded as the representative which is the one of the most successful e-finance and e-commerce organization in China. The e-finance division of Alibaba aims to build a Chinese e-finance territory according to external financial innovation based on internet platform, e-commerce platform and mobile network platform. In 2013, June 13th, Alibaba has launched Yu’E Bao which means “savings balance treasure”. It is an online investment fund and it poses a big challenge to competitors in China’s banking and asset management industries and to country’s regulators. It is also a significant management change to Alibaba. This essay will analyze Yu’E Bao based on china’s e-commerce market and financial policy background. In addition the outcomes of Yu’E Bao will be critically evaluated from both external and internal aspect.
In order to analyze